TLS c/o 2020 - In #Squad We Trust Forum

[thatlawlkid]

Kinda wish I'd been depositing into a 529 instead of my 401k these last few years, tbh

+1
Regerts

[Dodocogon]

So wait how tf do K-JD students afford moving costs / LSAT/LSAC costs?

Parents, I expect.

Parents are helping me move/pay the 4 months rent you have to upfront in Boston, luckily - it was a lot easier for me to cover the $400 at home. Worked 25-30+ hours a week in undergrad and paid application/LSAT costs though.

[Kopetz]

also regarding loans: lol, buckle up borrowers

[thatlawlkid]

also regarding loans: lol, buckle up borrowers

This is an easy fix, just ask your parents for a small loan of 1 million dollars. Law school debt solved and you can buy something shiny too

[airwrecka]

Husband and I were on track to have more than 15k saved (separate from his 401k and IRA) before I start school, but then he got into a car accident that required $1000+ repair and we decided to pay off one of his student loans from undergrad to reduce our monthly payments (which is actually really helpful for our budget and a good financial decision, I know), so that plan is no longer in place. Thankfully we still have at least something in the bank in case of emergencies, but looking at moving costs is making me think we might need to use it all to move across the country! The farthest I've ever had to move is one state away (and I live in the Midwest, so everything is very cheap here, relatively), so realizing how much it will cost to just GET to NYC is a little mind-boggling

Props to the majority of you who are moving alone--I don't know what I would do if I had to do this by myself

[Earlskies]

Props to the majority of you who are moving alone--I don't know what I would do if I had to do this by myself

+1

[ashrice13]

Does anybody here have a 401k? If so, what are y'all planning on doing with it while in lawl school?

I have a 401k and a Roth IRA right now. The 401k I'll probably roll into my existing IRA...I am wierdly afraid that if I don't I'll forget about it or something. I'm dont think I'm touching any of it at least for the first 2 years. I MIGHT use it to help me during 3L because I can take money out fee free If it's for education expenses but not sure yet. I would need help with COL expenses and I'm pretty sure it only covers certain things like room and board/books/etc. I've yet to find info about how they prove that the money I took out when to pay for those things specifically so I have a feeling taking money out for COL might be really difficult.

Lol never knew you could do this. I've been working for a few years so I probably skipped right over the ability to use it for education when I first started since I had no intentions of going back to school originally. Guess it depends how much I'll need to finance through loans as to whether or not it will be worth it (and what happens with interest rates).

You can only do this with a Roth IRA, I believe. You will still get taxes taken out but you won't get the usual early-withdrawl penalty fees. It's really easy to use for tuition but the COL stuff I think gets a little more complicated (or it seems that way to me...if it isn't, please someone let me know because the would be amazing). I think whether or not it's worth it depends on a lot of factors that are different for everyone.

One thing I found out is that it does count as income when you do your taxes the following year. This is why it's suggested to use this option in your last year of school. If you took it out the year before, it would be reported for FAFSA and might change your loan award for the following year.

[waldorf]

So wait how tf do K-JD students afford moving costs / LSAT/LSAC costs?

My dad paid for the LSAT (he was a lawyer and was SO excited for me to follow a similar path that he was willing to help, thankfully) and I worked full time during undergrad + 80 hour weeks during the summer, so I paid for the prep myself and have a sizable savings. I'm only moving two hours, and my brother has a truck, so my moving costs will be pretty much nonexistent. Using savings to pay for security deposit/rent.

[twiix]

Does anybody here have a 401k? If so, what are y'all planning on doing with it while in lawl school?

I have a 401k and a Roth IRA right now. The 401k I'll probably roll into my existing IRA...I am wierdly afraid that if I don't I'll forget about it or something. I'm dont think I'm touching any of it at least for the first 2 years. I MIGHT use it to help me during 3L because I can take money out fee free If it's for education expenses but not sure yet. I would need help with COL expenses and I'm pretty sure it only covers certain things like room and board/books/etc. I've yet to find info about how they prove that the money I took out when to pay for those things specifically so I have a feeling taking money out for COL might be really difficult.

Lol never knew you could do this. I've been working for a few years so I probably skipped right over the ability to use it for education when I first started since I had no intentions of going back to school originally. Guess it depends how much I'll need to finance through loans as to whether or not it will be worth it (and what happens with interest rates).

You can only do this with a Roth IRA, I believe. You will still get taxes taken out but you won't get the usual early-withdrawl penalty fees. It's really easy to use for tuition but the COL stuff I think gets a little more complicated (or it seems that way to me...if it isn't, please someone let me know because the would be amazing). I think whether or not it's worth it depends on a lot of factors that are different for everyone.

One thing I found out is that it does count as income when you do your taxes the following year. This is why it's suggested to use this option in your last year of school. If you took it out the year before, it would be reported for FAFSA and might change your loan award for the following year.

You thankfully only have to pay interest on the gain of whatever you've deposited. So if you are careful with what you withdraw, you could likely navigate around the tax implications.

Also, according to this : https://www.irs.gov/publications/p970/ch09.html , room and board is eligible.

[ashrice13]

Does anybody here have a 401k? If so, what are y'all planning on doing with it while in lawl school?

I have a 401k and a Roth IRA right now. The 401k I'll probably roll into my existing IRA...I am wierdly afraid that if I don't I'll forget about it or something. I'm dont think I'm touching any of it at least for the first 2 years. I MIGHT use it to help me during 3L because I can take money out fee free If it's for education expenses but not sure yet. I would need help with COL expenses and I'm pretty sure it only covers certain things like room and board/books/etc. I've yet to find info about how they prove that the money I took out when to pay for those things specifically so I have a feeling taking money out for COL might be really difficult.

Lol never knew you could do this. I've been working for a few years so I probably skipped right over the ability to use it for education when I first started since I had no intentions of going back to school originally. Guess it depends how much I'll need to finance through loans as to whether or not it will be worth it (and what happens with interest rates).

You can only do this with a Roth IRA, I believe. You will still get taxes taken out but you won't get the usual early-withdrawl penalty fees. It's really easy to use for tuition but the COL stuff I think gets a little more complicated (or it seems that way to me...if it isn't, please someone let me know because the would be amazing). I think whether or not it's worth it depends on a lot of factors that are different for everyone.

One thing I found out is that it does count as income when you do your taxes the following year. This is why it's suggested to use this option in your last year of school. If you took it out the year before, it would be reported for FAFSA and might change your loan award for the following year.

You thankfully only have to pay interest on the gain of whatever you've deposited. So if you are careful with what you withdraw, you could likely navigate around the tax implications.

Also, according to this : https://www.irs.gov/publications/p970/ch09.html , room and board is eligible.

I knew it was but I never understood what documentation I needed to show that the money was going to room and board... I always assumed that you couldn't just SAY it was for room and board and then spend it on anything you want. However, that link makes it sound like you may just need to show the school's room and board allowance for the school year as proof...which would be amazing. I plan on calling a rep from the investment company but just haven't done it yet since it's not something I'm even remotely thinking of doing this year. It might be a good idea to talk to them just to find out all the details now though.

So...there's one more thing on my "To Do this summer" list.

[jstans]

Just looked up the cost of cross-country Uhaul rental, plus apartment rental fees, plus the cost of a hotel to stop at on my 22 hour journey...god help me

[chandhi]

Just looked up the cost of cross-country Uhaul rental, plus apartment rental fees, plus the cost of a hotel to stop at on my 22 hour journey...god help me

I can't deal. I'm gonna be broke af before I even buy textbooks

[thatblondegirl]

Kinda wish I'd been depositing into a 529 instead of my 401k these last few years, tbh

I didn't even know about 529. Damn, I really need to up my investment plan literacy.

[thatblondegirl]

Just looked up the cost of cross-country Uhaul rental, plus apartment rental fees, plus the cost of a hotel to stop at on my 22 hour journey...god help me

I can't deal. I'm gonna be broke af before I even buy textbooks

This. I was originally planning on taking the scenic route during my move, but now I don't know if I'll have the money for it

[Keilz]

Kinda wish I'd been depositing into a 529 instead of my 401k these last few years, tbh

I didn't even know about 529. Damn, I really need to up my investment plan literacy.

I thought the 529 is about the same as a 401K in that it's meant for much longer term savings.

[chargers21]

I'm so happy that I have no savings and no investments so that I don't have to worry about these things

[chandhi]

Just looked up the cost of cross-country Uhaul rental, plus apartment rental fees, plus the cost of a hotel to stop at on my 22 hour journey...god help me

I can't deal. I'm gonna be broke af before I even buy textbooks

This. I was originally planning on taking the scenic route during my move, but now I don't know if I'll have the money for it

I just Google Mapped my route, and it will take 34 hours. That's "scenic" enough for me lol

[airwrecka]

I'm planning to rent one of those PODS storage containers. Looks like we'll be moving out of our apartment at the end of July but won't actually be able to move into our new one until mid-August, so we're going to stay at our in-laws house (not ideal, but you gotta do what you gotta do). PODS are great because you can keep your stuff stored for a long time and then they drive it to your destination when you're ready. I think it's cheaper than a moving company (and maybe/probably a u-haul too) because you do all the actually heavy lifting yourself. They just drop off the storage container when you need it, and then pick it up and move it when you're ready!

[Monday]

.

[Dr.Degrees_Cr.Cash]

Kinda wish I'd been depositing into a 529 instead of my 401k these last few years, tbh

yeah, but my employer wouldn't match to a 529

[HonestlyThough]

I'm planning to rent one of those PODS storage containers. Looks like we'll be moving out of our apartment at the end of July but won't actually be able to move into our new one until mid-August, so we're going to stay at our in-laws house (not ideal, but you gotta do what you gotta do). PODS are great because you can keep your stuff stored for a long time and then they drive it to your destination when you're ready. I think it's cheaper than a moving company (and maybe/probably a u-haul too) because you do all the actually heavy lifting yourself. They just drop off the storage container when you need it, and then pick it up and move it when you're ready!

Housemate did one of these! Think it was about $1200. Might be what I have to do.

[Kopetz]

Kinda wish I'd been depositing into a 529 instead of my 401k these last few years, tbh

yeah, but my employer wouldn't match to a 529

Fair. The bulk of my retirement is in an unmatched 401k-alike, with a bit in a defined-contribution that I'm only about 20% vested in.

Because I can roll the 401k to a Roth IRA, that might actually end up being better if I'm taxed at an overall lower rate than the federal-only rate on a 529 contribution in DC.

[Dr.Degrees_Cr.Cash]

Does anybody here have a 401k? If so, what are y'all planning on doing with it while in lawl school?

I have a 401k and a Roth IRA right now. The 401k I'll probably roll into my existing IRA...I am wierdly afraid that if I don't I'll forget about it or something. I'm dont think I'm touching any of it at least for the first 2 years. I MIGHT use it to help me during 3L because I can take money out fee free If it's for education expenses but not sure yet. I would need help with COL expenses and I'm pretty sure it only covers certain things like room and board/books/etc. I've yet to find info about how they prove that the money I took out when to pay for those things specifically so I have a feeling taking money out for COL might be really difficult.

Lol never knew you could do this. I've been working for a few years so I probably skipped right over the ability to use it for education when I first started since I had no intentions of going back to school originally. Guess it depends how much I'll need to finance through loans as to whether or not it will be worth it (and what happens with interest rates).

You can only do this with a Roth IRA, I believe. You will still get taxes taken out but you won't get the usual early-withdrawl penalty fees. It's really easy to use for tuition but the COL stuff I think gets a little more complicated (or it seems that way to me...if it isn't, please someone let me know because the would be amazing). I think whether or not it's worth it depends on a lot of factors that are different for everyone.

One thing I found out is that it does count as income when you do your taxes the following year. This is why it's suggested to use this option in your last year of school. If you took it out the year before, it would be reported for FAFSA and might change your loan award for the following year.

You can pull either out, if you can prove you need it for school and that you are spending it on school.

Also, if you have to pay more taxes on a roth withdrawal I wouldn't touch it. Long term you're probably better off taking out loans and letting your retirement sit anyway, especially if you're gonna get double taxed on it.

[jstans]

Just looked up the cost of cross-country Uhaul rental, plus apartment rental fees, plus the cost of a hotel to stop at on my 22 hour journey...god help me

I can't deal. I'm gonna be broke af before I even buy textbooks

This. I was originally planning on taking the scenic route during my move, but now I don't know if I'll have the money for it

I just Google Mapped my route, and it will take 34 hours. That's "scenic" enough for me lol

One route has me going through cities like Newark in a Uhaul while the longer option has me going through no big cities. Gotta decide if the extra mileage is worth it to avoid city traffic in a rig.

[Dr.Degrees_Cr.Cash]

Kinda wish I'd been depositing into a 529 instead of my 401k these last few years, tbh

yeah, but my employer wouldn't match to a 529

Fair. The bulk of my retirement is in an unmatched 401k-alike, with a bit in a defined-contribution that I'm only about 20% vested in.

Because I can roll the 401k to a Roth IRA, that might actually end up being better if I'm taxed at an overall lower rate than the federal-only rate on a 529 contribution in DC.

Yeah the taxes are another thing I'm looking into, If I don't get a paying summer gig I'm 100% rolling into a roth and rolling in that sweet sweet untaxed pitiful retirement fund